CANOPY GROWTH CORPORATION ANNOUNCES ENTRY INTO THE AFRICAN MARKET WITH ACQUISITION OF DADDY CANN LESOTHO
Canopy Growth Corp. has acquired Daddy Cann Lesotho Pty. Ltd., trading as Highlands.
Based in the Kingdom of Lesotho, Highlands holds a licence to cultivate, manufacture, supply, hold, import, export and transport cannabis and its resin. Lesotho is a high altitude mountainous kingdom that boasts over 300 days of sunshine per year and was the first African nation to legalize medical cannabis in 2017. It has ideal humidity and growing conditions for greenhouse cultivation. Together with very low operating and resource costs, this places Canopy Growth in a position to produce large quantities of high-quality medical cannabis at a low cost. Lesotho is also strategically positioned for the future medical cannabis economy of southern Africa including the potential market of South Africa, with a population of over 55 million people, where medical cannabis laws are being developed.
Lesotho is Canopy Growth's first step into Africa and we look forward to working with the strong local team at Highlands to establish production and distribution capabilities consistent with Canopy's global standard for high-quality, regulated medical cannabis products,
said Mark Zekulin, president, Canopy Growth.
Combining the domestic and regional knowledge of Highlands with the global experience and expertise of Canopy Growth is the latest example of the company establishing a meaningful local presence. With the objective of future local production to serve the regional market, these operations are part of Canopy Growth's commitment to the Lesotho economy including supporting job creation and lasting community engagement.
All key members of Highlands's management team will continue to lead the organization as part of the Canopy Growth family.
We're excited to join the Canopy Growth family and bring together our strong entrepreneurial experience and local knowledge in the region with Canopy Growth's track record and quality standards in the global medical cannabis industry, Lesotho and southern Africa have enormous potential and we look forward to building a responsible medical cannabis business across the region.
said Jody Aufrichtig, founder, Highlands.
Under the terms of the agreement, the company issued 666,362 common shares in the capital of the company to the sole shareholder of Highlands on closing and, subject to meeting certain milestones, the company will issue up to an additional 333,281 common shares to the sole shareholder of Highlands for a total of up to 999,643 common shares based on the 30-day volume-weighted average price of $28.763 of Canopy Growth's common shares on the Toronto Stock Exchange as of May 11, 2018. The total value of the consideration payable by the company under the terms of the agreement is approximately $28.8-million.
This marks the fifth continent of operations for Canopy Growth, which has market presence in North and South America, Oceania, Europe, and now Africa.
Here's to future growth (in southern Africa).
About Canopy Growth Corp.
Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and softgel capsule forms.
Canopy Growth has established partnerships with leading sector names including cannabis icon Snoop Dogg, breeding legends DNA Genetics and Green House seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates 10 cannabis production sites with over 2.4 million square feet of production capacity, including over 500,000 square feet of GMP-certified production space. The company has operations in nine countries across five continents.
We seek Safe Harbor.